The Internal Structure of a Business
Homework Questions:
1) Immediately below Mr. Bhengu (CFO) we find the Financial Manager. From
what you learnt in CFM 1, please describe the role of the financial manager.
The role of a Financial Manager is to increase shareholder wealth / value.
The Financial Manager is engaged in the following activities:
-raising capital (through share issues, loans, etc);
-making capital invest decisions;
-making capital distribution decisions (whether to pay a dividend or to re-
invest profits into the business);
-managing the organisation’s working capital (cash, inventory, debtors and
creditors)
-etc.
2) Also taking from your CFM knowledge, what is the difference between a
“shareholder” and a “stakeholder”?
A shareholder is an owner of the company, he / she has shares in the
company.
A stakeholder is any person who has an interest in the company but does
not own shares in the company. Example of stakeholders include employees,
suppliers, customers, lenders (banks), government, etc.
3) Mr. Bhengu’s finance & accounting team has three tax practitioners. From your
FAC 1 knowledge, please name three types of taxes that we normally see in a
company.
Value Added Tax (VAT), Income Tax on Companies, Employee Taxes (SITE,
PAYE, UIF, SITE, SDL)
4) Go to the internet and read about “environmental auditors”. Give a brief
description of what an environmental auditor does and the type of qualifications
that one needs to become an environmental auditor?
Homework Questions:
1) Immediately below Mr. Bhengu (CFO) we find the Financial Manager. From
what you learnt in CFM 1, please describe the role of the financial manager.
The role of a Financial Manager is to increase shareholder wealth / value.
The Financial Manager is engaged in the following activities:
-raising capital (through share issues, loans, etc);
-making capital invest decisions;
-making capital distribution decisions (whether to pay a dividend or to re-
invest profits into the business);
-managing the organisation’s working capital (cash, inventory, debtors and
creditors)
-etc.
2) Also taking from your CFM knowledge, what is the difference between a
“shareholder” and a “stakeholder”?
A shareholder is an owner of the company, he / she has shares in the
company.
A stakeholder is any person who has an interest in the company but does
not own shares in the company. Example of stakeholders include employees,
suppliers, customers, lenders (banks), government, etc.
3) Mr. Bhengu’s finance & accounting team has three tax practitioners. From your
FAC 1 knowledge, please name three types of taxes that we normally see in a
company.
Value Added Tax (VAT), Income Tax on Companies, Employee Taxes (SITE,
PAYE, UIF, SITE, SDL)
4) Go to the internet and read about “environmental auditors”. Give a brief
description of what an environmental auditor does and the type of qualifications
that one needs to become an environmental auditor?
